How Is Extreme Fear In Crypto Related To Bitcoin Bottoms?

The crypto market is outright fearful of the longest phase in more than a year to coincide with a massive Bitcoin drop of more than 50%. The once trending cryptocurrency has yet to recover, leaving the market and participants in extreme fear. But historical data shows that fear is generally a good thing for Bitcoin, helping the asset find support and at least a short-term bottom. Bottom Things: Bitcoin Price Action Has a Perfect Relationship with Fear and Greed Fear is a wonderful emotion and can even drive so-called "diamond hand" Bitcoin holders into panic selling. No emotion other than greed approaches people who act more irrationally than fear. Greed can be worse, blinding investors and traders to what's going on around them. When money is easy, it's hard to hit that sell button and make a profit knowing that prices can go up much more. Related literature | Bitcoin Bulls and Bears Beware of Potential Pump and Dump Fractal The two sentiments are hardly balanced when it comes to markets, making the extremes to the other particularly noteworthy. Few investment legends have made a name for themselves and built their reputations on opposing positions, and there is no more obvious reason than comparing the crypto market's index of fear and greed to Bitcoin's price action. Fear and green go well with hills and bottoms | Source: The One Simple Trick To Achieve Regular Success In BTCUSD Crypto Investments Be Afraid When Others Are Greedy And Greedy. Buy blood from the street. All these famous financial quotes refer directly to counter trade. So why can't everyone control their emotions and buy when things get scary and sell while others are shouting about their earnings on social media? The crypto market's fear and greed index compared to Bitcoin's price action shows how this "one simple trick" really works and can piss you off.

Join the Discussion

  • BrokerEUR/USD
    InterTrader 0.6pips (fixed) margin: 3.33%
    City Index 0.5pips (fixed) margin: 3.33%
  • Back to top